China Seeks US AI-Chip Export Control Relaxation Amid Trade Deal Negotiations

China is eager to reduce the US export control on a key componenent for artificial intellegence as part of theirtrade pact ahead of the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping.  

Chinese officials have informed experts in the US that it seeks relaxation in export linked restrictions on high-bandwidth memory chips,  as per The FT report, citing unnamed people familiar with the matter.

US Treasury secretary Scott Bessent has led three rounds of trade negotiations with China over the past three months.

One indiviual of the Chinese side, headed by vice-premier He Lifeng, raised the HBM issue in some of those negotiations.

These high-bandwidth chips aid in conducting data intensive AI tasksat a faster pace, and are closely monitored by investors given its utilisation AI graphic processors, particularly Nvidia's.

The FT said China is concerned because the U.S. HBM controls hamper the ability of Chinese companies such as Huawei to develop their own AI chips.

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Successive U.S. administrations have curbed exports of advanced chips to China, looking to stymie Beijing's AI and defence development.

While this has impacted U.S. firms' ability to fully address booming demand from China, one of the world's largest semiconductor markets, it still remains an important revenue driver for American chipmakers.